Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Has anyone on here purchased off the plan properties?
Yes, purchased first property as PPOR off the plan, was about 6 months to completion.
This was about 13 years ago....
Property price was 355k
What are the pros and cons of these investments?
Can only speak from experience.
Got 14k FHOG.
A couple k deposit bond secured the property.
Was the same price as older properties, but was in a more boutique development and lower density.
Got 30% CG in 18 months and then sold, CGT free.
Don't believe we could replicate this again, and wouldn't try.
The conditions just don't seem the same as before.
Prices simply seem to be too inflated and high density can have major strata issues now and in future.
And before someone comments search for off the plan, I already have but didn't find the answers I was looking for.
I haven't spoken to a ba yet so it didn't come from them but thanks for the heads up anyway. My cousin told me that her friends sister bought an otp property with only 5k outlay of deposit to start with, once the project was completed she made a $200k profit. Is this possible or is she talking ****.
I haven't spoken to a ba yet so it didn't come from them but thanks for the heads up anyway. My cousin told me that her friends sister bought an otp property with only 5k outlay of deposit to start with, once the project was completed she made a $200k profit. Is this possible or is she talking ****.
That is a very good post by Redom and does highlight some additional benefits to OTP. It is true that you can get into the market on a very low amount and potentially get some nice equity which is much less time consuming than a reno strategy. You can definitely make money from OTP, my sister in-law bought OTP in a small complex in Northcote that has done very well.
BUT
And I along with probably 80% of the forum will keep coming back to it being akin to gambling which is purely speculative. The market COULD go up but it COULD also go down. Now the risks of the market going down IMO are far worse for your future investing compared to the benefits if the market was to go up.
Compare a house to an OTP apartment and say the market goes south. With an OTP apartment you are stuck. What happens if you need to exit? You have no option but to wear the cost. Now compare to say an older house. If the market goes south and you need to exit well there are a few strategies you can employ to claw back the loss to atleast break even, dust yourself off and go again.